Written by: thiccy

Translated by: Tim, PANews

In 2025, the cryptocurrency market experienced astonishing volatility again, yet many suffered heavy losses in trading.

This article is not written for those traders who have been losing money, but for those who are highly profitable yet have seen a significant drawdown in profits this quarter.

One of life's greatest pains is witnessing months or even years of effort go to waste in a single night.

In Greek mythology, Sisyphus is punished to endlessly push a boulder up a hill, only to watch it roll back down each time he reaches the top. The cruelty of this punishment lies in its precise hit on the core of human existence—the absurdity of futility and repetition. However, Camus saw another possibility in Sisyphus: when he acknowledges the absurd and no longer hopes for ultimate redemption, but instead fully commits to the act of pushing the boulder up the hill itself, he changes his fate in the process. True victory may not lie in the boulder staying at the top of the hill, but in the clarity of consciousness and unyielding calmness each time he bends down to push the stone.

Cryptocurrency trading requires this same quality. Unlike most professions, this field has no so-called "progress bar." A single wrong decision can completely destroy an entire career, leading many down a path of despair.

When the boulder truly rolls down, people respond in two ways.

Some will double down, trying to recover their losses. They adopt more aggressive trading strategies, essentially attempting to recoup their losses using a Martingale strategy (a method of doubling down when losing). If they can quickly earn back their funds, they can avoid facing the emotional reality of their losses. This method is often effective in the short term, but it is an extremely dangerous strategy, as it reinforces a trading habit that mathematically leads to total ruin.

Others become exhausted and choose to exit completely. They usually have enough funds to live comfortably and believe that the risks and rewards of the market are no longer aligned. They comfort themselves by saying that there are no longer any advantages in the market, or that these advantages are about to disappear. Their choice to exit is essentially a "death sentence" for the market, never to return.

These two reactions, while understandable, are merely superficial responses that fail to address the core issue. The real problem lies in the vulnerabilities of your risk management system. Most people tend to overestimate their actual level of risk management.

Risk management itself is not an unsolvable problem; the relevant mathematical principles have long been proven. The real challenge is not in not knowing what to do, but in being able to stick to the established strategy when facing emotions, self, pressure, and fatigue. Aligning action with cognition is one of the most difficult practices for humans, and the market will mercilessly expose the flaws of this cognitive bias and disconnection from reality.

How to Move On After a Loss?

First, you must accept one thing: you are not unlucky, nor have you been treated unfairly. This loss is an inevitable result of your human weaknesses. If you do not identify and address this issue, losses will happen again.

Second, you need to fully accept your current net worth; you cannot always anchor yourself to past historical highs. "I'll make it back" is one of the most dangerous impulses in the market. Step away from the screen for a while and be grateful for what you have already achieved. You are still alive, you are still in this game, and you are no longer trying to recover losses, but simply focusing on achieving new profits.

View this loss as tuition paid for your own shortcomings; this lesson is one you will learn sooner or later. Fortunately, you are paying this price now rather than later when it could be much higher. If you can respond correctly, you will look back on this moment with gratitude. Character is often forged in the crucible of adversity.

Pinpoint the reasons for your failure accurately. For most people, the issues usually stem from a combination of the following situations: over-leveraging, not setting a stop-loss point when entering a position, or failing to strictly execute the stop-loss when it is triggered. Establishing ironclad rules regarding risk control and stop-loss can prevent most catastrophic losses.

Remind yourself that the only way to prevent the boulder from rolling all the way down again is to strictly adhere to those rules. They are your only safeguard against the torment you are currently experiencing. Without rules, you are nothing.

Allow yourself to vent about the loss; you can scream or break things. Let the emotions out rather than bottling them up inside.

Most importantly, you must turn pain into lessons. Otherwise, it will surely repeat.

This understanding of coping with pain applies not only to trading losses but also broadly to life. The common coping mechanisms mentioned earlier seem blunt because they often introduce as many new problems as they solve. If you cannot recover from losses in a refined and precise manner, you will ultimately oscillate around the optimal solution like a gradient descent algorithm with too large a step size, never converging to the correct position.

When Napoleon lost a battle, he would immediately begin rebuilding his army and preparing for the next move. A single failure is not fatal unless you lose the ability to continue fighting. The primary task after encountering a setback is to ensure that this weakness is not exploited again and to restore your best competitive state as quickly as possible.

You should not seek redemption, nor should you seek revenge. You should not react passively, nor should you accumulate anger. You must become a cold machine. You must self-repair and then rebuild the system, ensuring that the same mistakes are never made again. Every failure you endure will become a moat in your system, and this moat is something that others must pay the price to learn.

Such losses can shape a person, so be grateful for them; their occurrence is meant to impart wisdom. This loss did not happen for no reason. Allow yourself to feel the pain, but transform that pain into motivation, ensuring that you never make the same mistake again.

These things are difficult because once you find the right direction, the continuous growth of wealth becomes a natural outcome.

Good luck.

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